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    S2/8TI21 MA18A/ Joseph J. Martocchio Human Resource Management Fifteenth Edition Human Resource Management Prepared by Susan C. Schanne Eastern Michigan University

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    iii TABLE OF CONTENTS Topic Page CHAPTER 1: HUMAN RESOURCE MANAGEMENT: AN OVERVIEW Chapter Objectives........................................................................................................................... 1 Key Terms........................................................................................................................................ 1 Lecture Outline 2 Answers to Chapter 1 Questions for Review ................................................................................ 10 Discussion of Chapter 1 Incidents ................................................................................................. 15 CHAPTER 2: BUSINESS ETHICS, CORPORATE SOCIAL RESPONSIBILITY, AND SUSTAINABILITY Chapter Objectives......................................................................................................................... 18 Key Terms...................................................................................................................................... 18 Lecture Outline 18 Answers to Chapter 2 Questions for Review ................................................................................ 22 Discussion of Chapter 2 Incidents ................................................................................................. 25 CHAPTER 3: EQUAL EMPLOYMENT OPPORTUNITY, AFFIRMATIVE ACTION, AND WORKFORCE DIVERSITY Chapter Objectives......................................................................................................................... 28 Key Terms...................................................................................................................................... 28 Lecture Outline 29 Answers to Chapter 3 Questions for Review ................................................................................ 37 Discussion of Chapter 3 Incidents ................................................................................................. 43 CHAPTER 4: STRATEGIC PLANNING, HUMAN RESOURCE PLANNING, AND JOB ANALYSIS Chapter Objectives......................................................................................................................... 47 Key Terms...................................................................................................................................... 47 Lecture Outline 48 Answers to Chapter 4 Questions for Review ................................................................................ 54 Discussion of Chapter 4 Incidents ................................................................................................. 59 CHAPTER 5: RECRUITMENT Chapter Objectives......................................................................................................................... 62 Key Terms...................................................................................................................................... 62 Lecture Outline 63 Answers to Chapter 5 Questions for Review ................................................................................ 67 Discussion of Chapter 5 Incidents ................................................................................................. 71 CHAPTER 6: SELECTION Chapter Objectives......................................................................................................................... 75 Key Terms...................................................................................................................................... 75

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    iv Lecture Outline 77 Answers to Chapter 6 Questions for Review ................................................................................ 85 Discussion of Chapter 6 Incidents ................................................................................................. 91 CHAPTER 7: PERFORMANCE MANAGEMENT AND APPRAISAL Chapter Objectives......................................................................................................................... 94 Key Terms...................................................................................................................................... 94 Lecture Outline 95 Answers to Chapter 7 Questions for Review .............................................................................. 101 Discussion of Chapter 7 Incidents ............................................................................................... 106 CHAPTER 8: TRAINING AND DEVELOPMENT Chapter Objectives....................................................................................................................... 110 Key Terms.................................................................................................................................... 110 Lecture Outline 113 Answers to Chapter 8 Questions for Review .............................................................................. 121 Discussion of Chapter 8 Incidents ............................................................................................... 126 CHAPTER 9: DIRECT FINANCIAL COMPENSATION (MONETARY COMPENSATION) Chapter Objectives....................................................................................................................... 130 Key Terms.................................................................................................................................... 130 Lecture Outline 133 Answers to Chapter 9 Questions for Review .............................................................................. 139 Discussion of Chapter 9 Incidents ............................................................................................... 144 CHAPTER 10: INDIRECT FINANCIAL COMPENSATION (EMPLOYEE BENEFITS) Chapter Objectives....................................................................................................................... 148 Key Terms.................................................................................................................................... 148 Lecture Outline 150 Answers to Chapter 10 Questions for Review ............................................................................ 155 Discussion of Chapter 10 Incidents ............................................................................................. 160 CHAPTER 11: LABOR UNIONS AND COLLECTIVE BARGAINING Chapter Objectives....................................................................................................................... 164 Key Terms.................................................................................................................................... 164 Lecture Outline 166 Answers to Chapter 11 Questions for Review ............................................................................ 175 Discussion of Chapter 11 Incidents ............................................................................................. 181 CHAPTER 12: INTERNAL EMPLOYEE RELATIONS Chapter Objectives....................................................................................................................... 185 Key Terms.................................................................................................................................... 185 Lecture Outline 186 Answers to Chapter 12 Questions for Review ................................................... ….....................1 90

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    v Discussion of Chapter 12 Incidents ............................................................................................. 194 CHAPTER 13: EMPLOYEE SAFETY, HEALTH, AND WELLNESS Chapter Objectives....................................................................................................................... 198 Key Terms.................................................................................................................................... 198 Lecture Outline 199 Answers to Chapter 13 Questions for Review ............................................................................ 203 Discussion of Chapter 13 Incidents ............................................................................................. 206 CHAPTER 14: GLOBAL HUMAN RESOURCE MANAGEMENT Chapter Objectives....................................................................................................................... 211 Key Terms.................................................................................................................................... 211 Lecture Outline 212 Answers to Chapter 14 Questions for Review ............................................................................ 216 Discussion of Chapter 14 Incidents ............................................................................................. 219

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    vi TEACHING RESOURCES Chapter Objectives Chapter objectives are provided at the beginning of each chapter. Key Terms All key terms used in each chapter are defined. Lecture Outline A comprehensive lecture outline is prepared for each chapter. Answers to Chapter Questions for Review Answers to each of the review questions at the end of the chapter are provided. Discussion of Chapter Incidents Possible answers to each of the HRM Incidents presented in the text are provided. Because there are few instances in human resource management where there is a perfect right or wrong way to accomplish a task, please remember that responses provide only a guide to the discussion of the cases. Instructors may wish to elaborate further in their discussion.

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    vii Sample Syllabus HUMAN RESOURCE MANAGEMENT Spring 20XX Course Description: Human resource management topics include staffing, human resource development, compensation, health and safety, employee and labor relations, and human resource research. NOTE: IF A STUDENT DOES NOT HAVE THE REQUIRED PREREQUISITES, THEY MUST DROP THE COURSE OR THEY MAY BE DROPPED BY THE INSTRUCTOR. Prerequisites: Junior standing INSTRUCTOR: Professor OFFICE: BBC 218 OFFICE HOURS: Tuesday - 7:00 – 9:00 Thursday - 9:15 – 11:15 Wednesday - 2:55 – 5:25 PHONE: 555-5555 VIRTUAL OFFICE HOURS — Professor@internet.com Monday – 7:00 – 10:00 a.m. Wednesday – 7:00 – 9:00 a.m. I will respond quickly to your inquiries during these times. You will find that it is a very effective means of communicating with me. I also check my e-mail frequently and will respond to you as soon as possible. TEXT : Human Resource Management, 15 th edition, by Joseph J. Martocchio PLEASE NOTE : Any student with a disability is encouraged to contact the Office of Services for Students with Disabilities in Drew Hall, Room 200 (555) 555-5555. It is each student's responsibility to register with the Office of Services for Students with Disabilities when requesting a reasonable accommodation. COURSE OBJECTIVES 1. An insight into the evolving role of strategic HRM in today’s organizations, the strategic role of HR functions, and the impact of technology and global competition. 2. An awareness of the importance of business ethics and corporate social responsibility in HRM. 3. An insight into how workforce diversity provides an opportunity for management. 4. Examine the legislation and regulations affecting staffing.

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    viii 5. Know the significant federal court decisions affecting staffing. 6. Understand the Uniform Guidelines, Adverse Impact, and Affirmative Action Programs that affect staffing. 7. Understand the ethical, regulatory, environmental, social, political, and technological issues of staffing. 8. An understanding of job analysis, strategic planning, human resource planning, recruitment (including Internet recruiting), and selection. 9. An awareness of the importance of training and developing for employees at all levels. 10. An understanding of performance appraisal and its role in performance management. 11. An appreciation of how compensation and benefits programs are formulated and administered. 12. An understanding of safety and health factors as they affect the firm’s profitability. 13. An opportunity to understand employee and labor relations. 14. An appreciation of the global dimension of HRM. STUDENT EVALUATION Five objective exams, in addition to a comprehensive final exam, will be given. The final will count the equivalent of two tests. Test questions may come from your text, my lecture, or a combination. All tests are weighted 100 points each. The following grading scale pertains: 90 - 100 = A; 80 - 89 = B; 70 - 79 = C; 60 - 69 = D; below 60 = F. I curve each test. Therefore, you must have a 90- grade average for an “A.” 89.99 is not an “A.” Your grade for each test will be available to you in “Student Tools,” “Check Your Grade” in Blackboard. I will also return the test the next class period. TENTATIVE SCHEDULE Week Topic Reading Assignment 1 Course Introduction 2 Human Resource Management: An Overview Chapter 1 3 Business Ethics , Corporate Social Responsibility , And Sustainability Exam Chapter 2 4 Equal Employment Opportunity, Affirmative Chapter 3

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    ix Action, and Workforce Diversity 5 Strategic Planning, Human Resource Planning, and Job Analysis Chapter 4 6 Recruitment Exam Chapter 5 7 Selection Chapter 6 8 Performance Management and Appraisal Chapter 7 9 Training and Development Exam Chapter 8 10 Direct Financial Compensation (Monetary Compensation) Chapter 9 11 Indirect Financial Compensation (Employee Benefits) Chapter 10 12 Labor Unions and Collective Bargaining Exam Chapter 11 13 Internal Employee Relations Chapter 12 14 Employee Safety, Health, and Wellness Chapter 13 15 Global Human Resource Management Exam Chapter 14 Finals Week Final Exam - Comprehensive

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    Human Resource Management Fifteenth Edition Joseph J. Martocchio New York, NY Instructor's Resource Manual (Download only) for Human Resource Management Susan Schanne

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    1 CHAPTER 1 HUMAN RESOURCE MANAGEMENT: AN OVERVIEW LEARNING OBJECTIVES 1.1 Define human resource management (HRM) and the importance of studying it 1.2 Describe who performs HRM 1.3 Explain how the HRM function serves as a strategic business partner and the elements of the dynamic HRM environment 1.4 Discuss the role of HRM in building corporate culture and employer branding 1.5 Summarize HRM issues for small businesses 1.6 Identify ways that country culture influences global business 1.7 Explore essential skills for developing your career in HR or any other career path KEY TERMS Human resource management (HRM): The utilization of individuals to achieve organizational objectives. Staffing: Process through which an organization ensures that it always has the proper number of employees with the appropriate skills in the right jobs, at the right time, to achieve organizational objectives. Performance management (PM): Goal-oriented process directed toward ensuring that organizational processes are in place to maximize the productivity of employees, teams, and ultimately, the organization. Human resource development (HRD): Major HRM function consisting not only of training and development, but also of individual career planning and development activities, organization development, and performance management and appraisal. Direct financial compensation (monetary compensation): Pay that a person receives in the form of wages, salary, commissions, and bonuses. Indirect financial compensation (benefits): All financial rewards that are not included in direct financial compensation. Nonfinancial compensation: Satisfaction that person receives from the job itself or from the psychological and/or physical environment in which the person works. Safety: Protection of employees from injuries caused by work-related accidents. Health: Employees’ freedom from physical or emotional illness. Human resource management professional: An individual who normally acts in an advisory or staff capacity, working with other managers to help them address human resource matters. Line managers: Individuals directly involved in accomplishing the primary purpose of the organization.

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    2 HR outsourcing (HRO): Process of hiring external HR professionals to do the HR work that was previously done internally. Shared service center (SSC): A center that takes routine, transaction-based activities dispersed throughout the organization and consolidates them in one place. Professional employer organization (PEO): A company that leases employees to other businesses. Executive: Top- level manager who reports directly to a corporation’s chief executive officer or to the head of a major division. Generalist: Person who may be an executive and performs tasks in a variety of HR- related areas. Specialist: Individual who may be an HR executive, a human resource manager, or a nonmanager, and who is typically concerned with only one of the six functional areas of human resource management. Profession: Vocation characterized by the existence of a common body of knowledge and a procedure for certifying members. Human capital: As defined by economists, human capital refers to sets of collective skills, knowledge, and ability that employees can apply to create economic value for their employers. Union: Comprised of employees who have joined together for the purpose of dealing with their employer. Shareholders: Owners of a corporation. Human resource information system (HRIS): Any organized approach for obtaining relevant and timely information on which to base human resource decisions. Corporate culture: System of shared values, beliefs, and habits within an organization that interacts with the formal structure to produce behavioral norms. Employer branding: F irm’s corporate image or culture focused on attracting the type of employees the firm is seeking. Country’s culture: Set of values, symbols, beliefs, language, and norms that guide human behavior within the country. LECTURE OUTLINE HUMAN RESOURCE MANAGEMENT Human resource management (HRM) can be defined as the optimal utilization of individuals to achieve organizational objectives. HUMAN RESOURCE MANAGEMENT FUNCTIONS Six functional areas are associated with effective human resource management: staffing, human resource development, performance management, compensation, safety and health, and employee and labor relations.

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    3 ● STAFFING — Process through which an organization ensures that it always has the proper number of employees with the appropriate skills in the right jobs, at the right time, to achieve organizational objectives. ● Job analysis : Systematic process of determining the skills, duties, and knowledge required for performing specific jobs in an organization. ● Human resource planning : Systematic process of matching the internal and external supply of people with job openings anticipated in the organization over a specified period of time. ● Recruitment : Process of attracting qualified individuals and encouraging them to apply for work with the organization. ● Selection : Process through which the organization chooses, from a group of applicants, those individuals best suited both for open positions and the company. ● PERFORMANCE MANAGEMENT — A goal-oriented activity to ensure organizational processes are in place to maximize the productivity of employees, teams, and ultimately, the organization. ● Performance appraisal : A formal system to review and evaluate individual or team performance. ● HUMAN RESOURCE DEVELOPMENT — A major HRM function consisting not only of training and development, but also of career planning and development activities, organization development, performance management, and appraisal. ● Training : Activities designed to provide learners with the knowledge and skills needed for their present jobs. ● Organization development (OD) : A planned and systematic attempt to change the organization to a more behavioral environment. ● Career planning : Ongoing process whereby an individual sets career goals and identifies the means to achieve them. ● Career development : Formal approach used by the organization to ensure that people with the proper qualifications and experiences are available when needed.

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    4 ● COMPENSATION — All rewards that individuals receive as a result of their employment. ● Direct Financial Compensation : Pay that a person receives in the form of wages, salaries, bonuses, and commissions. ● Indirect Financial Compensation (Benefits) : All financial rewards that are not included in direct compensation such as paid vacations, sick leave, holidays, and medical insurance. ● Nonfinancial Compensation : Satisfaction that a person receives from the job itself or from the psychological and/or physical environment in which the person works. ● EMPLOYEE AND LABOR RELATIONS — Businesses are required by law to recognize a union and bargain with it in good faith if the firm’s employees want the union to represent them. Internal employee relations comprise the human resource management activities associated with the movement of employees within the organization such as promotions, demotion, termination, and resignation. ● SAFETY AND HEALTH — Employees who work in a safe environment and enjoy good health are more likely to be productive and yield long-term benefits to the organization. ● Safety : Activities involved in protecting employees from injuries caused by work-related accidents. ● Health : Activities involved in securing the employees’ freedom from illness and their general physical and mental well-being. ● HUMAN RESOURCE DATA ANALYTICS — Pervades all HRM functional areas and the researcher’s laboratory is the entire work environment. Human resource research is key to developing the most productive and satisfied workforce possible. Data analytics go a long way towards establishing the HRM function as a strategic business partner. ● INTERRELATIONSHIPS OF HRM FUNCTIONS — All HRM functional areas are highly interrelated. WHO PERFORMS THE HUMAN RESOURCE MANAGEMENT ACTIVITIES? The person or units who perform human resource management tasks has changed dramatically in recent years.

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    5 ● HUMAN RESOURCE MANAGEMENT PROFESSIONAL — An individual who normally acts in an advisory (or staff) capacity when working with other (line) managers regarding human resource matters. ● LINE MANAGERS — Individuals directly involved in accomplishing the primary purpose of the organization. As the traditional work of HR managers diminishes, line managers are stepping up and performing some duties typically done by human resource professionals. ● HR OUTSOURCING — Process of hiring an external provider to do the work that was previously done internally. ● Discrete services outsourcing: Involves one element of a business process or a single set of high-volume repetitive functions such as benefits. ● Business process outsourcing (BPO): The transfer of the majority of HR services to a third party. ● HR SHARED SERVICE CENTERS — Take routine, transaction-based activities that are dispersed throughout the organization and consolidate them in one place. ● PROFESSIONAL EMPLOYER ORGANIZATION (PEO) — Company that leases employees to other businesses. When a decision is made to use a professional employer organization , the company releases its employees who are then hired by the PEO. HUMAN RESOURCE MANAGEMENT PROFESSION There are various designations in the human resource management profession. ● EXECUTIVE — A top- level manager who reports directly to a corporation’s chief executive officer or to the head of a major division is called an executive. ● GENERALIST — A person who may be an executive and performs tasks in a variety of HR-related areas is called a Generalist. ● SPECIALIST — An individual who may be an HR executive, a human resource manager, or a non-manager, and who is typically concerned with only one of the five functional areas of human resource management.

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    6 ● PROFESSION: Vocation characterized by the existence of a common body of knowledge and a procedure for certifying members. Professions have representative organizations. In HR these include the Society for Human Resource Management, the Human Resource Certification Institute, the Association for Talent Development, and WorldatWork. Opportunities and compensation in this profession are growing. HUMAN RESOURCES AS A STRATEGIC BUSINESS PARTNER IN A DYNAMIC ENVIRONMENT Today’s HR professional must be a strategic business partner with upper management. HR must thoroughly understand all aspects of the businesses they support. Working as a strategic partner requires a deeper and broader understanding of business issues. The HR professional must inform executives of the key role employees play in achieving organizational goals. Doing so requires HR professionals to understand the role of capital in value creation. ● CAPITAL: The factors that enable companies to generate income, increase company stock prices, economic value, strong brand identity, and reputation. ● HUMAN CAPITAL: As defined by economists, refers to sets of collective skills, knowledge, and ability that employees can apply to create economic value for their employers. DYNAMIC HUMAN RESOURCE MANAGEMENT ENVIRONMENT Many interrelated factors affect the five HRM functions. Factors outside an organization’s boundaries that affect a firm’s human resources make up the external environment . ● LEGAL CONSIDERATIONS — Federal, state, and local legislation, and the many court decisions interpreting this legislation, in addition to many presidential executive orders, have had a major impact on human resource management. ● LABOR MARKET — Potential employees located within the geographic area from which employees are normally recruited. ● SOCIETY — Society may also exert pressure on human resource management. ● Ethics : Discipline dealing with what is good and bad, or right and wrong, or with moral duty and obligation. ● Corporate social responsibility : Implied, enforced, or felt obligation of managers, acting in their official capacity, to serve or protect the interests of groups other than themselves.

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